IDEX Corporation (IEX) has reported an 11.40 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $75.90 million, or $0.99 a share in the quarter, compared with $68.13 million, or $0.89 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $79.17 million, or $1.03 a share compared with $68.13 million or $0.89 a share, a year ago.
Revenue during the quarter grew 10.14 percent to $553.55 million from $502.57 million in the previous year period. Gross margin for the quarter expanded 89 basis points over the previous year period to 45.33 percent. Total expenses were 79.10 percent of quarterly revenues, down from 79.44 percent for the same period last year. This has led to an improvement of 33 basis points in operating margin to 20.90 percent.
Operating income for the quarter was $115.67 million, compared with $103.34 million in the previous year period.
However, the adjusted operating income for the quarter stood at $120.47 million compared to $103.34 million in the prior year period. At the same time, adjusted operating margin improved 120 basis points in the quarter to 21.76 percent from 20.56 percent in the last year period.
"Our first quarter results were strong as demand improved significantly, particularly in North American industrial markets with some improvement in larger capital projects. Organic revenue growth of 5 percent, our first organic growth since the fourth quarter of 2014, was driven by 6 percent organic growth in FMT and 5 percent in HST. I am proud of our team and their ability to execute and deliver for our customers and shareholders. We generated $15 million of backlog during the quarter and delivered robust operating margin, EPS and free cash flow that exceeded our prior expectations. Last quarter, we were cautious about calling a recovery due to ongoing market and geopolitical volatility. While these issues continue to be a concern, we have seen broad-based recovery over the past two quarters and we now expect better overall performance in 2017, stated Andrew K. Silvernail chairman and chief executive officer."
For financial year 2017, IDEX Corporation projects diluted earnings per share to be in the range of $4 to $4.10 on adjusted basis.
For the second-quarter, IDEX Corporation projects diluted earnings per share to be in the range of $1.04 to $1.06 on an adjusted basis.
Operating cash flow improves
IDEX Corporation has generated cash of $84.98 million from operating activities during the quarter, up 20.77 percent or $14.61 million, when compared with the last year period.
The company has spent $9.62 million cash to meet investing activities during the quarter as against cash outgo of $230.12 million in the last year period.
The company has spent $99.39 million cash to carry out financing activities during the quarter as against cash inflow of $186.41 million in the last year period.
Cash and cash equivalents stood at $216.10 million as on Mar. 31, 2017, down 39.71 percent or $142.35 million from $358.44 million on Mar. 31, 2016.
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